In response to the recent press speculation over the possible merge with Swiss natural resources supplier Glencore, Rio Tinto has issued a statement confirming no discussions are taking place between the two parties.
The statement said Glencore did contact Rio Tinto in July 2014 regarding a potential merger, but after consultation with its financial and legal adviser, it concluded unanimously that a combination was not in the best interests of Rio Tinto’s shareholders. “The board’s rejection was communicated to Glencore in early August and there has been no further contact between the companies on this matter,” it said.
Rio Tinto’s chairman Jan du Plessis said: “Under the leadership of Sam Walsh and Chris Lynch, Rio Tinto has made significant progress in refocusing and strengthening its business.
“The board believes that the continued successful execution of Rio Tinto’s strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders.”
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